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Mutual Fund Misfires of the Market - October 14, 2019
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
ProFunds Europe 30 Investor (UEPIX - Free Report) : 1.78% expense ratio and 0.75% management fee. UEPIX is a Europe - Equity mutual fund investing in stocks across the vast European continent. With a five year after-expenses return of 0.45%, you're mostly paying more in fees than returns.
Federated Capital Income Fund B : CAPBX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. CAPBX offers an expense ratio of 1.7% and annual returns of 1.32% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Natixis Oakmark International Fund A (NOIAX - Free Report) : Expense ratio: 1.31%. Management fee: 0.85%. NOIAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of just 1.2%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
MassMutual Premier Disciplined Growth Service Class (DEIGX - Free Report) : 0.74% expense ratio and 0.45% management fee. DEIGX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With an annual return of 11.43% over the last five years, this fund is a winner.
Thrivent Small Cap Stock I (TSCSX - Free Report) is a stand out fund. TSCSX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities. With five-year annualized performance of 10.86% and expense ratio of 0.85%, this diversified fund is an attractive buy with a strong history of performance.
Janus Henderson Enterprise S (JGRTX - Free Report) : Expense ratio: 1.16%. Management fee: 0.64%. JGRTX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. JGRTX has produced a 14.41% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
If you have concerns or any doubts about your investment advisor, read our just-released report:
Image: Bigstock
Mutual Fund Misfires of the Market - October 14, 2019
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
ProFunds Europe 30 Investor (UEPIX - Free Report) : 1.78% expense ratio and 0.75% management fee. UEPIX is a Europe - Equity mutual fund investing in stocks across the vast European continent. With a five year after-expenses return of 0.45%, you're mostly paying more in fees than returns.
Federated Capital Income Fund B : CAPBX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. CAPBX offers an expense ratio of 1.7% and annual returns of 1.32% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Natixis Oakmark International Fund A (NOIAX - Free Report) : Expense ratio: 1.31%. Management fee: 0.85%. NOIAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of just 1.2%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
MassMutual Premier Disciplined Growth Service Class (DEIGX - Free Report) : 0.74% expense ratio and 0.45% management fee. DEIGX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With an annual return of 11.43% over the last five years, this fund is a winner.
Thrivent Small Cap Stock I (TSCSX - Free Report) is a stand out fund. TSCSX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities. With five-year annualized performance of 10.86% and expense ratio of 0.85%, this diversified fund is an attractive buy with a strong history of performance.
Janus Henderson Enterprise S (JGRTX - Free Report) : Expense ratio: 1.16%. Management fee: 0.64%. JGRTX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. JGRTX has produced a 14.41% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
If you have concerns or any doubts about your investment advisor, read our just-released report:
4 Warning Signs That Your Advisor Might be Sabotaging Your Financial Future